SALT – A blockchain-based lending platform
Over the past few years, I have watched Bitcoin and the broader blockchain space grow tremendously. And whenever someone asks me about it (Bitcoin and/or the blockchain), I tell them it’s like being able to time travel back to 1995 and tell everyone about what the “internet” will be in 10, 20, 30 years.
Back in the early days of the internet, most people who knew about it associated it with email – there was very little knowledge about any other possible uses. Now, here we are again, watching a new, transformative technology mature in front of us. I say all of that because we are now discovering new projects based on this new technology that weren’t possible before.
One of these projects is SALT.
What is SALT?
SALT is an acronym for Secure Automated Lending Technology. As you guys know, I can be a sucker for branding and SALT has put some actual thought into theirs. Apparently, salt (as in table salt) was used as one of the first currencies and a store of value. You learn something new every day! So, because of this, combined with the clever acronym, they chose SALT. And I love it.
I know most of you don’t care about any of that so I will get to the point about why you should care about SALT.
What does SALT do?
Typically, when you want to take out a loan, you approach a lender (usually a bank unless you’re in the mafia), request a specific amount of money, they look at your income, credit history, etc and come back with a decision and interest rate based on these factors.
SALT has taken a very different approach. To put it simply, and in their words:
“We’ve simplified the application process by focusing on the value of the borrower’s blockchain assets instead of their credit score. Borrowers are automatically matched with capital from our extensive network of lenders. SALT keeps collateral assets safe in a fully-audited, ultra-secure architecture during the life of the loan so members can borrow with confidence.”
So what’s the take-away here? If you have Bitcoin, you can use that Bitcoin as collateral to get a loan in USD without having to sell your Bitcoin. And in case you haven’t realized the bigger implication here, you don’t have to withdraw your Bitcoin from Coinbase and get taxed on your capital gains! Win, win!
Why should you care?
I realize not everyone cares about loans or getting cheaper and more secure funding for their various needs. But if you’re like me, an exciting product like this is going to create a lot of FOMO (Fear Of Missing Out) when they launch their platform for public use.